Tips for Saving Money and Growing Your Savings Account

Having a healthy savings account is crucial at every stage of life. It provides a safety net that protects you from life’s uncertainties and prepares you for future expenses. However, inflation constantly erodes the value of your hard-earned money and diminishes its purchasing power. This reduction in value highlights the need for financial security and prudent money management practices.

Discussed below are simple yet effective strategies to help you save money and build a robust savings account.

1. Open a savings account that offers high interest rates

Saving account interest rates are usually nominal and hardly combat inflation. However, with the INDIE Savings Account by IndusInd Bank, you enjoy an interest rate of up to 6.75% p.a., which is one of the best in the industry. Your funds won’t just sit idle; they will grow at a high rate.

Besides enjoying a high savings account interest rate on your balance, you also get benefits like:

• 100% digital account opening process
• No minimum balance requirement
• A rewards-based loyalty program
• Instant access to funds with INDIE’s My Credit Line
• A numberless card, single-use virtual disposable card, debit cards for international travellers, and more

You can open a savings account on the INDIE app instantly through your Aadhaar card and PAN card. Complete all the formalities from your home and maximise your savings today.

2. Use auto-sweep FD to earn FD-like rates on idle funds

A smart way to ensure your idle funds don’t sit unproductively is to use the auto-sweep facility offered by many savings bank account. It combines the liquidity of a savings account with the high returns of a fixed deposit. Whenever your bank balance exceeds a certain threshold, the excess money automatically converts into a fixed deposit where they earn higher interest rates.

3. Diversify your savings and automate your investments

Diversification is an important wealth and risk management strategy. Instead of putting all your eggs in one basket, spread your savings across different financial instruments like:

• Stocks
• Mutual funds
• ETFs or exchange-traded funds
• Bonds
• ELSS or Equity Linked Savings Scheme

You can also automate your investments through saving accounts and bring discipline to your financial strategy. This automation means you invest regularly without manual intervention each month. Since you stay invested during the ups and downs of the market, your savings benefit from uninterrupted compounding growth.

4. Shop smart with debit card rewards

Wondering how to save money while spending? Many debit cards offer rewards in the form of cashback, points, discounts, vouchers, etc. You can redeem these rewards for various purchases and reduce your overall spending. If feasible, use your debit card for bill payments, shopping, dining, and daily expenses to maximise these benefits.

This strategy turns everyday spending into an opportunity to earn more and the money you save through discounts or rewards grows your financial reserves without additional effort. Just make sure to compare the reward structure across different cards to get the best deals.

5. Use digital banking apps

Digital banking apps give you a comprehensive view of your finances, including income, expenses, and investments. With these apps, you can:

• Set detailed budgets
• Track daily and monthly spending patterns
• Find opportunities for cost reduction
• Establish clear savings goals
• Monitor your progress in real time
• Keep expenditures in check through automated alerts
• Set reminders for bill payments to help avoid late fees

Such useful features simplify your finances and make every rupee contribute to the growth of your savings account.

Key takeaways

Implementing practical strategies to save money and build a healthy savings account is important for financial planning and stability. Besides the prudent tips mentioned above, adopt additional useful strategies such as leveraging tax-saving investments, minimising high-interest debt, and seeking professional financial advice.

Remember, a responsible approach today lays the groundwork for a secure financial future. So, work for your savings smartly and invest in your financial well-being wisely.